Adoption and Effectiveness of Enterprise Resource Planning (ERP) Systems : A Comparative Analysis of Key Performance Indicators (KPIs) and the Perceived Value from Automation

This research investigates the adoption and effectiveness of Enterprise Resource Planning (ERP) systems among Micro, Small, and Medium Enterprises (MSMEs) in Delhi, India. The study explores the extent of ERP adoption, key performance indicators (KPIs) used to measure its effectiveness, and the perceived value derived from automation. It identifies the drivers and barriers influencing ERP implementation, emphasizing the role of cloud-based and modular ERP solutions tailored to specific business needs. A cost-benefit analysis assessed ERP's impact on operational efficiency, decision-making, and compliance, especially under India's evolving regulatory frameworks such as GST and e-invoicing. The findings reveal that while ERP systems significantly improve productivity, financial accuracy, and scalability, challenges such as high initial investment, lack of technical expertise, and resistance to change remain. By examining local businesses across sectors—including retail, manufacturing, and distribution—this paper provides insights into ERP implementation success factors, particularly through the lens of real-time data, KPI monitoring, and organizational adaptability. The study concludes with policy and practical recommendations for facilitating ERP accessibility and enhancing SME competitiveness in the digital economy